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New laws to protect employees' super

New laws have been passed which are designed to protect super savings, particularly for employees who have low super balances and have insurance attached to their super.

Putting Members' Interests First (PMIF) 
 

  • Insurance cancellation for low balance accounts

    If an employee's super balance has never reached $6,000 by 31 March 2020, super trustees are required to cancel any insurance cover attached to their super account, unless you're paying their insurance premiums or your employee has elected in writing to keep their insurance. Find out more.
  • Insurance opt-in for new employees

    From 1 April 2020, insurance cannot be provided to employees if their super balance hasn't reached $6,000 and/or who are under the age of 25. In order to have insurance, these employees will need to opt in to insurance by completing the Choose to have insurance cover in super form

 

Protecting Your Super (PYS) 
 

  • Insurance cancellation on inactive accounts

    If there are no contributions or rollovers made to an employee's super account for 16 months, we're required to cancel any insurance cover attached to their account, unless you're paying their insurance premiums or your employee has elected to have insurance. Find out more.
  • Changes to fees

    If employee's account balance is below $6,000, administration and investment fees and indirect costs cannot exceed 3% pa. Exit fees (including contribution split fee) have also been removed. Find out more.
  • Transferring super to the ATO

    If an employee's super balance is less than $6,000 and is inactive for 16 months or more, we're required to transfer it to the ATO. Find out more.
     

How are we telling your employees about these changes?
 

We're providing your employees with information about these changes through various means, such as the brochure attached to their FY 2019 and 2020 Annual Statement, email, letter and SMS.

We'll continue to contact your employees via letter if they’ve been identified as impacted by PYS in regards to insurance in super or super balance transfers to the ATO. New employees will also be informed of the impact of PMIF in their MLC MasterKey Business Super welcome kits. These changes require your employees to make a decision. To help them understand their options, further information and support has been made available through our call centre and updated content on our website. To make it easy to submit their instructions around insurance in super, the relevant form can be submitted online or through the MLC app.

We've also provided advisers with PMIF and PYS information updates to help any of your employees who may be their clients.

 

Important information

This is intended to provide general information only and has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 (AFSL 236465) without taking into account any person's objectives, financial situation or needs. Before acting on this information, a person should consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend obtaining financial advice specific to a person's situation before making any financial investment or insurance decision.Part of the National Australia Bank Group of Companies. An investment with NULIS Nominees (Australia) Limited is not a deposit or liability of, and is not guaranteed by, National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (NAB). NAB does not guarantee or otherwise accept any liability in respect of this product.